Genel Energy to farm-in to Sidi Moussa

JERSEY, CHANNEL ISLANDS--(Marketwire - Aug 23, 2012) -

23 August 2012
LONGREACH OIL AND GAS LIMITED
Genel Energy to farm-in to Sidi Moussa Exploration Permits, offshore
Morocco
LONGREACH OIL AND GAS LIMITED ("Longreach" or "the Company"), an
independent oil and gas company holding exploration and near term
development licences in Morocco, is pleased to announce that, subject
to the consent of the Ministry of Energy and the Ministry of Finance in
Morocco, Genel Energy plc ("Genel") will join Longreach and its joint
venture partners, Serica Sidi Moussa B.V. and San Leon Offshore Morocco
B.V. (respectively "Serica" and "San Leon"), in the exploration of the
set of permits which comprise the Sidi Moussa Offshore area ("Sidi
Moussa") in Morocco.
Under the transaction, Genel will acquire a 60% equity interest in Sidi
Moussa, pro rata from each of Longreach, Serica and San Leon according
to their respective equity interests. In return, Genel will pay US$1.3
million (US$130,000 net to Longreach) in recognition of past costs, and
will pay for the drilling of the commitment well required under the
terms of the First Extension Period of the Sidi Moussa permits
(including the full costs relating to the ONHYM carried interest), up
to a cap of US$50 million. As a result of the farm-out, Longreach will
hold an ongoing interest of 1.5% in the Sidi Moussa permits with Serica
and San Leon holding 5% and 8.5% respectively. The joint venture
partners have already informed the Moroccan authorities of their
intention to proceed into the First Extension Period.
Over the past 21/2 years, Longreach and its joint venture partners have
carried out extensive geological and geophysical analyses of the sub
surface in Sidi Moussa. Having identified several prospective
exploration targets, a farm-out process was initiated to attract a
partner with the requisite financial and technical capability to drill
in the relatively deep waters of Sidi Moussa. The transaction with
Genel is the successful result of that process.
Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:"Longreach
and its joint venture partners are delighted to welcome
Genel Energy into the Sidi Moussa Permits, offshore Morocco. The work
undertaken on the Permits has shown considerable opportunities and
bringing in a company such as Genel will enable the partners to conduct
near term exploration drilling on this licence."
-ENDS-
For Further Information:
Longreach
Bryan Benitz Chairman & CEO +44 20 3137 7756
Pelham Bell Pottinger
Mark Antelme / Philip Dennis / Rollo Crichton-Stuart +44 207 861 3232
Additional information on Longreach Oil and Gas Limited can be found at
www.longreachoilandgas.com .
Additional information on Longreach Oil and Gas Limited can also be
found at www.sedar.com
Special Note Regarding Forwarding Looking Statements:
This press release contains forward-looking statements. These
statements relate to future events or the Company's future performance.
All statements other than statements of historical fact are
forward-looking statements. Forward-looking statements are often, but
not always, identified by the use of words such as "may", "will","should",
"expect", "plan", "anticipate", "believe", "estimate","predict", "project",
"potential", "targeting", "intend", "could","might", "continue" or the
negative of these terms or other similar
terms. Forward-looking statements in this press release include, but
are not limited to the completion of evaluations and processing and
interpretation of data, the performance characteristics of the
Company's oil and gas properties, capital expenditure programs,
drilling plans, and realization of the anticipated benefits of
acquisitions.
Forward-looking statements are only predictions. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. Some of the
risks and other factors which could cause results to differ materially
from those expressed in the forward-looking statements contained in
this press release include, but are not limited to: general economic
conditions in Canada, the Kingdom of Morocco and globally; industry
conditions, including fluctuations in the price of oil and gas,
governmental regulation of the oil and gas industry, including
environmental regulation; fluctuation in foreign exchange or interest
rates; risks inherent in oil and gas operations; political risk;
geological, technical, drilling and processing problems; unanticipated
operating events which could cause commencement of drilling and
production to be delayed; the need to obtain consents and approvals
from industry partners, regulatory authorities and other third-parties;
stock market volatility and market valuations; competition for, among
other things, capital, acquisitions of reserves, undeveloped land and
skilled personnel; incorrect assessments of the value of acquisitions
or resource estimates; any future inability to obtain additional
funding, when required, on acceptable terms or at all; credit risk;
changes in legislation; any unanticipated disputes or deficiencies
related to title matters; dependence on management and key personnel;
and risks associated with operating in and being part of a joint
venture.
Although the forward-looking statements contained in this press release
are based upon assumptions which management of the Company believes to
be reasonable, the Company cannot assure that actual results will be
consistent with its expectations and assumptions. Undue reliance
should not be placed on the forward-looking statements contained in
this news release as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur. These
statements speak only as of the date of this press release, and the
Company does not undertake any obligation to publicly update or revise
any forward-looking statements except as expressly required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END